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Posts Tagged ‘Illinois budget deficit’

Illinois and Loan Sharks

Posted by Larry Doyle on December 13th, 2010 7:10 AM |

Those strapped for cash will go to great lengths to buy time and seek relief. This reality is not pleasant but it is reality. In a world awash in a sea of debt, the debtors will continually be faced with the prospects of devaluing, defaulting, or restructuring their debts. Prior to defaulting or restructuring, debtors will often resort to “unique strategies” to postpone the day of reckoning.

This reality very often plays out at the individual level or the small business level. When large corporate entities are forced to “unique strategies” to continue operations, that typically is not a very good sign. But what about municipalities? What does it mean when a city, state, or town is forced to a “unique strategy” in order to continue operations? Not a very good sign either, right? Right.

Well, indications are that the state of Illinois is resorting  to a “unique strategy” and “paying up” in order to get short term financing. (more…)

California’s Misery Has Company

Posted by Larry Doyle on July 6th, 2009 4:34 PM |

While California has just issued IOU’s at 3.75% (not sure they’re worth the paper they’re written on), the Golden State has plenty of company in terms of fiscal misery. This CNBC interview with Alexi Giannoulias, Illinois State Treasurer, addresses the depths of the fiscal disaster in that state.

In listening to Treasurer Giannoulias describe the extent of the mess in Illinois, it begs the question as to how things could get so bad over such a long time period.

A $9 billion budget deficit and $75 billion pension shortfall spells a lot of pain for the residents of Illinois. Say hello to increased taxes and cuts in services.

At some point, the corrupt politicians in Illinois may want to stop treating a variety of programs as personal piggy banks.


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